Keys Financial Has Done Extremely Well in Recent Years,and Its

question 36

Multiple Choice

Keys Financial has done extremely well in recent years,and its stock now sells for $175 per share.Management wants to get the price down to a more typical level,which it thinks is $25 per share.What stock split would be required to get to this price,assuming the transaction has no effect on the total market value? Put another way,how many new shares should be given per one old share?

• A)6.98
• B)7.00
• C)7.35
• D)7.72
• E)8.10

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Definitions:

Experimental Group

In an experiment, the group exposed to a variable that is manipulated, the independent variable.

Independent Variable

In an experiment, the variable that is manipulated.

Dependent Variable

In an experiment, the behavioural response on measures the researchers hypothesize would be affected by the manipulation of the independent variable.

MMPI-II

Minnesota Multiphasic Personality Inventory-2; a psychological assessment that evaluates personality traits and psychopathology, commonly used for diagnosing mental illnesses.